DEPARTMENT OF INSURANCE AND FINANCIAL SERVICES  
INSURANCE  
HOLDING COMPANIES  
(By authority conferred on the director of the department of insurance and financial services  
by sections 210 and 1361 of the insurance code of 1956, 1956 PA 218, MCL 500.210 and  
500.1361, and Executive Reorganization Order No. 2013-1, MCL 550.991)  
R 500.71 Definitions.  
Rule 1. (1) As used in these rules:  
(a) “Act” means the insurance code of 1956, 1956 PA 218, MCL 500.100 to 500.8302.  
(b) “Chapter 13” means chapter 13 of the act, MCL 500.1301 to 500.1379.  
(c) “Executive officer” means chief executive officer, chief operating officer, chief  
financial officer, treasurer, secretary, controller, and another individual performing functions  
corresponding to those performed by the individuals described in this subdivision without regard  
to title.  
(d) “Ultimate controlling person” means the person that is not controlled by another person.  
(2) A term defined in the act has the same meaning when used in these rules, unless a more  
specific definition of a term is provided under chapter 13, in which case the term defined in  
chapter 13 has the same meaning when used in these rules. A term not defined in the act has  
meaning according to industry usage when used in these rules.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.72 Purpose.  
Rule 2. These rules set forth requirements and procedures that the director considers  
necessary to carry out chapter 13. These rules are necessary and appropriate in the public interest  
and for the protection of the policyholders in this state.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.73 Severability.  
Rule 3. If a provision of these rules, or the application of these rules to a person or  
circumstance, is held invalid by a court of competent jurisdiction, that determination does not  
affect other provisions or applications of these rules that can be given effect without the invalid  
provision or application, and to that end, the provisions of these rules are severable.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.74 Forms; general requirements.  
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Rule 4. (1) The department shall make available forms, titled Form A, Form B, Form C,  
Form D, and Form F, that must be used to prepare the statements required under chapter 13. The  
forms are not intended as blank forms to fill in. The statements filed must contain the numbers  
and captions of all items. The text of the items may be omitted, as long as the answers to the  
items clearly indicate the scope and coverage of each item. All instructions, whether appearing  
under the items of the form or elsewhere in the form, must be omitted. Unless expressly provided  
otherwise, if an item is inapplicable or the answer is in the negative, an appropriate statement to  
that effect must be made.  
(2) One complete copy of each statement, including exhibits and all other papers and  
documents filed as part of the statement, must be filed with the director in a manner prescribed  
by the department. The copy must be signed in the manner prescribed on the form or otherwise  
prescribed by the department. If an individual or group of individuals are ultimate controlling  
persons, the individuals shall sign the Form A, Form B, Form C, and Form F statements. The  
director shall reject a copy that is not properly signed until it is conformed. If the signature of a  
person is affixed pursuant to a power of attorney or other similar authority, a copy of the power  
of attorney or other authority must be filed with the statement.  
(3) Statements must be prepared electronically. Statements must be easily readable and  
suitable for review and reproduction. Debits in credit categories and credits in debit categories  
must be designated to make them clearly distinguishable on photocopies. Statements must be in  
the English language and monetary values must be stated in United States currency. If an exhibit  
or other paper or document filed with the statement is in a language other than English, it must  
be accompanied by a translation into the English language and a monetary value shown in a  
foreign currency must be converted into United States currency, unless the director allows the  
monetary value to be shown in a foreign currency.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.75 Forms; incorporation of information by reference; summaries and omissions.  
Rule 5. (1) Information required by an item of Form A, Form B, Form D, or Form F may  
be incorporated by reference in an answer or partial answer to another item. Information  
contained in a financial statement, annual report, proxy statement, statement filed with a  
governmental authority, or another document may be incorporated by reference in an answer or  
partial answer to an item of Form A, Form B, Form D, or Form F, as long as the document is  
filed as an exhibit to the statement. Excerpts of documents may be filed as exhibits if the  
documents are extensive. Documents currently on file with the director that were filed within 3  
years are not required to be attached as exhibits. References to information contained in exhibits  
or in documents already on file must clearly identify the material and specifically indicate that  
the material is incorporated by reference in the answer to the item. Material must not be  
incorporated by reference if the incorporation renders the statement incomplete, unclear, or  
confusing.  
(2) If an item requires a summary or outline of the provisions of a document, only a brief  
statement must be made as to the pertinent provisions of the document. In addition to the  
statement, the summary or outline may incorporate by reference particular parts of an exhibit or  
document currently on file with the director that was filed within 3 years and may be qualified in  
its entirety by the reference. If 2 or more documents that must be filed as exhibits are  
substantially identical in all material respects, except as to the parties, the dates of execution, or  
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other details, a copy of only 1 of the documents must be filed with a schedule identifying the  
omitted documents and setting forth the material details in which the documents differ from the  
documents that have a copy filed.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.76 Forms; information unknown or unavailable; extension.  
Rule 6. (1) If it is impractical to furnish any required information, document, or report  
when it must be filed, a separate document must be filed with the director that does all of the  
following:  
(a) Identifies the information, document, or report in question.  
(b) States why filing the information, document, or report when required is impractical.  
(c) Requests an extension of time for filing the information, document, or report to a  
specified date.  
(2) The request in subrule (1)(c) of this rule is considered granted unless the director denies  
the request within 60 days after receipt of the request.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.77 Forms; additional information and exhibits.  
Rule 7. In addition to the information expressly required to be included in Form A, Form B,  
Form C, Form D, and Form F, the director may request additional material information as  
necessary to make the information contained in the form not misleading. Exhibits may be filed in  
addition to those expressly required by the statement. The exhibit must clearly indicate the  
subject matter that it refers to. Changes to Form A, Form B, Form C, Form D, or Form F must  
include on the top of the cover page the phrase: “Change No. [insert number] to” and indicate the  
date of the change, not the date of the original filing.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.78 Subsidiaries of domestic insurers.  
Rule 8. The authority to invest in subsidiaries under section 1341a of the act, MCL  
500.1341a, is in addition to any authority to invest in subsidiaries contained in another provision  
of the act.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.79 Acquisition of control; statement filing; Form A.  
Rule 9. A person required to file a statement under section 1311 of the act, MCL 500.1311,  
shall furnish the required information on Form A.  
History: 2024 MR 6, Eff. March 20, 2024.  
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R 500.80 Amendments to Form A.  
Rule 10. An applicant required to file Form A shall promptly advise the director of changes  
in the information furnished on Form A arising after the date the information was furnished but  
before the director’s disposition of the application.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.81 Acquisition of certain “domestic insurers”; Form A.  
Rule 11. (1) If the person being acquired is determined to be a domestic insurer solely  
because of the provisions of section 1311(4) of the act, MCL 500.1311, the name of the domestic  
insurer on the cover page must be indicated as follows:  
“ABC Insurance Company, a subsidiary of XYZ Holding Company.”  
(2) If a domestic insurer described section 1311(4) of the act, MCL 500.1311, is being  
acquired, a reference to “the insurer” contained in Form A refers to both the domestic subsidiary  
insurer and the person being acquired.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.82 Annual registration of insurers; statement filing; Form B.  
Rule 12. An insurer required to file an annual registration statement under section 1324 of  
the act, MCL 500.1324, shall furnish the required information on Form B by May 1 of each year  
for the immediately preceding calendar year, unless an extension is granted by the director under  
section 1324 of the act, MCL 500.1324.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.83 Summary of changes to registration; statement filing; Form C.  
Rule 13. An insurer required to file an annual registration statement under section 1324 of  
the act, MCL 500.1324, shall furnish the required information on a summary of changes to  
registration statement, Form C, by May 1 of each year for the immediately preceding calendar  
year, unless an extension is granted by the director under section 1324 of the act, MCL 500.1324.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.84 Amendments to Form B.  
Rule 14. (1) An amendment to Form B must be filed within 15 days after the end of a  
month in which there is a material change to the information provided in the annual registration  
statement.  
(2) Amendments must be filed in the Form B format with only those items that are being  
amended reported. Each amendment must include “Amendment No. [insert number] to Form B  
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for [insert year]” at the top of the cover page and indicate the date of the change, not the date of  
the original filings.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.85 Alternative and consolidated registrations.  
Rule 15. (1) An authorized insurer may file a registration statement on behalf of an  
affiliated insurer or insurers that are required to register under section 1324 of the act, MCL  
500.1324. A registration statement may include information not required by the act regarding an  
insurer in the insurance holding company system, even if the insurer is not authorized to do  
business in this state. Instead of filing a registration statement on Form B, the authorized insurer  
may file a copy of the registration statement or similar report that it must file in its state of  
domicile if both of the following are met:  
(a) The statement or report contains substantially similar information required to be  
furnished on Form B.  
(b) The filing insurer is the principal insurance company in the insurance holding company  
system.  
(2) The question of whether the filing insurer is the principal insurance company in the  
insurance holding company system is a question of fact, and an insurer filing a registration  
statement or report instead of Form B on behalf of an affiliated insurer shall set forth a brief  
statement of facts that substantiate the filing insurer’s claim that it, in fact, is the principal insurer  
in the insurance holding company system.  
(3) With the prior approval of the director, an unauthorized insurer may follow any of the  
procedures that could be done by an authorized insurer under subrule (1) of this rule.  
(4) An insurer may take advantage of the provisions of section 1329 or 1330 of the act,  
MCL 500.1329 and 500.1330, without obtaining the prior approval of the director. The director  
reserves the right to require individual filings if the director finds the filings necessary in the  
interest of clarity, ease of administration, or the public good.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.86 Disclaimer of affiliation and termination of registration.  
Rule 16. (1) A petition for disclaimer of affiliation or a request for termination of  
registration claiming that a person does not, or will not upon the taking of some proposed action,  
control another subject person must contain the following information:  
(a) The number of authorized, issued, and outstanding voting securities of the subject  
person.  
(b) With respect to the person whose control is denied and all affiliates of that person, the  
number and percentage of shares of the subject person’s voting securities that are held of record  
or known to be beneficially owned, and the number of shares there is a right to acquire, directly  
or indirectly.  
(c) All material relationships and bases for affiliation between the subject person and the  
person whose control is denied and all affiliates of that person.  
(d) A statement explaining why the person must not be considered to control the subject  
person.  
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(2) The burden of proof for establishing that an affiliation does not exist rests with the  
petitioner and is subject to the director’s approval.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.87 Transactions subject to prior notice; notice filing; Form D.  
Rule 17. (1) An insurer required to give notice of a proposed transaction pursuant to section  
1341 of the act, MCL 500.1341, shall furnish the required information on Form D.  
(2) Agreements for cost sharing services and management services must, at a minimum, do  
all of the following, as applicable:  
(a) Identify the person providing services and the nature of the services.  
(b) Set forth the methods to allocate costs.  
(c) Require timely settlement, not less frequently than on a quarterly basis, and compliance  
with the requirements in the NAIC Accounting Practices and Procedures Manual.  
(d) Prohibit advancement of money by the insurer to the affiliate except to pay for services  
defined in the agreement.  
(e) State that the insurer shall maintain oversight for functions provided to the insurer by  
the affiliate and that the insurer shall monitor services annually for quality assurance.  
(f) Define books and records of the insurer to include all books and records developed or  
maintained under or related to the agreement.  
(g) Specify that all books and records of the insurer are and remain the property of the  
insurer, held for the benefit of the insurer and are subject to the control of the insurer.  
(h) State that all money and invested assets of the insurer are the exclusive property of the  
insurer, held for the benefit of the insurer and are subject to the control of the insurer.  
(i) Include standards for termination of the agreement with and without cause.  
(j) Include provisions for indemnification of the insurer if there is gross negligence or  
willful misconduct on the part of the affiliate providing the services.  
(k) Specify that if the insurer is placed in receivership or seized by the director under  
chapter 81 of the act, MCL 500.8101 to 500.8160, all of the following apply:  
(i) All of the rights of the insurer under the agreement extend to the receiver or director.  
(ii) All books and records must immediately be made available to the receiver or the  
director and must be turned over to the receiver or director immediately upon the receiver’s or  
director’s request.  
(l) Specify that the affiliate has no automatic right to terminate the agreement if the insurer  
is placed in receivership pursuant to chapter 81 of the act, MCL 500.8101 to 500.8159.  
(m) Specify that the affiliate shall continue to maintain any systems, programs, or other  
infrastructure notwithstanding a seizure by the director under chapter 81 of the act, MCL  
500.8101 to 500.8159, and shall make them available to the receiver, for so long as the affiliate  
continues to receive timely payment for services rendered.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.88 Enterprise risk report; Form F.  
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Rule 18. The ultimate controlling person of an insurer required to file an enterprise risk  
report pursuant to section 1325a of the act, MCL 500.1325a, shall furnish the required  
information on Form F.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.89 Group capital calculation.  
Rule 19. (1) If an insurance holding company system has previously filed the annual group  
capital calculation at least once, the lead state commissioner has the discretion to exempt the  
ultimate controlling person from filing the annual group capital calculation if the lead state  
commissioner makes a determination based upon that filing that the insurance holding company  
system meets all of the following criteria:  
(a) Has annual direct written and unaffiliated assumed premium, including international  
direct and assumed premium, but excluding premiums reinsured with the Federal Crop Insurance  
Corporation and Federal Flood Program, of less than $1,000,000,000.00.  
(b) Has no insurers within its holding company structure that are domiciled outside of the  
United States or 1 of its territories.  
(c) Has no banking, depository, or other financial entity that is subject to an identified  
regulatory capital framework within its holding company structure.  
(d) The holding company system attests that there are no material changes in the  
transactions between insurers and non-insurers in the group that have occurred since the last  
filing of the annual group capital calculation.  
(e) The non-insurers within the holding company system do not pose a material financial  
risk to the insurer’s ability to honor policyholder obligations.  
(2) If an insurance holding company system has previously filed the annual group capital  
calculation at least once, the lead state commissioner has the discretion to accept instead of the  
group capital calculation a limited group capital filing if both of the following apply:  
(a) The insurance holding company system has annual direct written and unaffiliated  
assumed premium, including international direct and assumed premium, but excluding premiums  
reinsured with the Federal Crop Insurance Corporation and Federal Flood Program, of less than  
$1,000,000,000.00.  
(b) All of the following additional criteria are met:  
(i) Has no insurers within its holding company structure that are domiciled outside of the  
United States or 1 of its territories.  
(ii) Does not include a banking, depository, or other financial entity that is subject to an  
identified regulatory capital framework.  
(iii) The holding company system attests that there are no material changes in transactions  
between insurers and non-insurers in the group that have occurred since the last filing of the  
report to the lead state commissioner and the non-insurers within the holding company system do  
not pose a material financial risk to the insurer’s ability to honor policyholder obligations.  
(3) For an insurance holding company that has previously met an exemption with respect to  
the group capital calculation pursuant to subrule (1) or (2) of this rule, the lead state  
commissioner may require at any time the ultimate controlling person to file an annual group  
capital calculation, completed in accordance with the group capital calculation instructions, if  
any of the following criteria are met:  
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(a) An insurer within the insurance holding company system is in a risk-based capital  
action level event, as prescribed by the director in an order issued under section 438 of the act,  
MCL 500.438, or otherwise prescribed by the director, or a similar standard for a non-United  
States insurer.  
(b) An insurer within the insurance holding company system meets 1 or more of the  
standards of an insurer determined to be in hazardous financial condition as established under  
section 436a of the act, MCL 500.436a.  
(c) An insurer within the insurance holding company system otherwise exhibits qualities of  
a troubled insurer as determined by the lead state commissioner based on unique circumstances  
including, but not limited to, the type and volume of business written, ownership and  
organizational structure, federal agency requests, and international supervisor requests.  
(4) A non-United States jurisdiction is considered to recognize and accept the group capital  
calculation if it satisfies the following criteria:  
(a) With respect to an exemption described under section 1325b(3)(d) of the act, MCL  
500.1325b, either of the following:  
(i) The non-United States jurisdiction recognizes the United States state regulatory  
approach to group supervision and group capital, by providing confirmation by a competent  
regulatory authority, in that jurisdiction, that insurers and insurance groups whose lead state is  
accredited by the NAIC under the NAIC Accreditation Program are subject only to worldwide  
prudential insurance group supervision including worldwide group governance, solvency and  
capital, and reporting, as applicable, by the lead state and shall not be subject to group  
supervision, including worldwide group governance, solvency and capital, and reporting, at the  
level of the worldwide parent undertaking of the insurance or reinsurance group by the non-  
United States jurisdiction.  
(ii) Where no United States insurance groups operate in the non-United States jurisdiction,  
that non-United States jurisdiction indicates formally in writing to the lead state with a copy to  
the International Association of Insurance Supervisors that the group capital calculation is an  
acceptable international capital standard. This serves as the documentation otherwise required in  
paragraph (i) of this subdivision.  
(b) The non-United States jurisdiction provides confirmation by a competent regulatory  
authority in that jurisdiction that information regarding insurers and their parent, subsidiary, or  
affiliated entities, if applicable, must be provided to the lead state commissioner in accordance  
with a memorandum of understanding or similar document between the commissioner and that  
jurisdiction, including, but not limited to, the International Association of Insurance Supervisors  
Multilateral Memorandum of Understanding or other multilateral memoranda of understanding  
coordinated by the NAIC. The commissioner shall determine, in consultation with the NAIC  
Committee Process, if the requirements of the information sharing agreements are in force.  
(5) A list of non-United States jurisdictions that recognize and accept the group capital  
calculation must be published through the NAIC Committee Process as follows:  
(a) A list of jurisdictions that recognize and accept the group capital calculation pursuant to  
section 1325b(3)(d) of the act, MCL 500.1325b, is published through the NAIC Committee  
Process to assist the lead state commissioner in determining which insurers shall file an annual  
group capital calculation. The list must clarify those situations in which a jurisdiction is  
exempted from filing under section 1325b(3)(d) of the act, MCL 500.1325b. To assist with a  
determination under section 1325b(4) of the act, MCL 500.1325b, the list must also identify  
whether a jurisdiction that is exempted under either sections 1325b(3)(c) and (d) of the act, MCL  
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500.1325b, requires a group capital filing for a United States based insurance group’s operations  
in that non-United States jurisdiction.  
(b) For a non-United States jurisdiction where no United States insurance groups operate,  
the confirmation provided to meet the requirement of subrule (4)(a)(ii) of this rule serves as  
support for recommendation to be published as a jurisdiction that recognizes and accepts the  
group capital calculation through the NAIC Committee Process.  
(c) If the lead state commissioner makes a determination pursuant to section 1325b(3)(d) of  
the act, MCL 500.1325b, that differs from the NAIC List, the lead state commissioner shall  
provide thoroughly documented justification to the NAIC and other states.  
(d) Upon determination by the lead state commissioner that a non-United States jurisdiction  
no longer meets 1 or more of the requirements to recognize and accept the group capital  
calculation, the lead state commissioner may provide a recommendation to the NAIC that the  
non-United States jurisdiction be removed from the list of jurisdictions that recognize and  
accepts the group capital calculation.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.90 Extraordinary dividends and reporting of all dividends.  
Rule 20. (1) Requests for approval of extraordinary dividends or another extraordinary  
distribution to shareholders must include all of the following:  
(a) The amount of the proposed dividend.  
(b) The date established for payment of the dividend.  
(c) A statement as to whether the dividend is to be in cash or other property and, if in  
property, a description of the property, its cost, and its fair market value together with an  
explanation of the basis for valuation.  
(d) A copy of the calculations determining whether the proposed dividend is extraordinary.  
The work paper must include all of the following information:  
(i) The amounts, dates, and form of payment of all dividends or distributions, including  
regular dividends but excluding distributions of the insurers own securities, paid within the  
period of 12 consecutive months ending on the date fixed for payment of the proposed dividend  
for which approval is sought and commencing on the day after the same day of the same month  
in the last preceding year.  
(ii) Surplus as regards policyholders, which is the total capital and surplus, as of the  
preceding December 31.  
(iii) If the insurer is a life insurer, the net gain from operations for the 12-month period  
ending the preceding December 31.  
(iv) If the insurer is not a life insurer, the net income less realized capital gains for the 12-  
month period ending the preceding December 31 and the 2 preceding 12-month periods.  
(v) If the insurer is not a life insurer, the dividends paid to stockholders excluding  
distributions of the insurer’s own securities in the preceding 2 calendar years.  
(e) A balance sheet and statement of income for the period intervening from the last annual  
statement filed with the director and the end of the month preceding the month in which the  
request for dividend approval is submitted.  
(f) A brief statement as to the effect of the proposed dividend upon the insurer’s surplus  
and the reasonableness of surplus in relation to the insurer’s outstanding liabilities and the  
adequacy of surplus relative to the insurer’s financial needs.  
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(2) Subject to section 1343(4) of the act, MCL 500.1343, a domestic insurer that is a  
member of an insurance holding company system and declares a shareholder dividend shall  
report the dividend to the director within 5 business days after declaring the dividend and not less  
than 10 business days before the payment.  
(3) Subject to section 1343(5) of the act, MCL 500.1343, an insurer subject to registration  
under section 1324 of the act, MCL 500.1324, shall not pay an extraordinary dividend or make  
another extraordinary distribution to its shareholders until 30 days after the director has received  
notice of the declaration and has not disapproved or has approved the payment within that  
period.  
(4) All filings pursuant to section 1343 of the act, MCL 500.1343, that either report the  
declaration of all dividends before payment or request approval of an extraordinary dividend  
must be directed to the attention of the Office of Insurance Financial and Market Regulation.  
History: 2024 MR 6, Eff. March 20, 2024.  
R 500.91 Adequacy of Surplus.  
Rule 21. The factors set forth in sections 403, 436a, 1341, 1342, and 1343 of the act, MCL  
500.403, 500.436a, 500.1341, 500.1342, and 500.1343, are not an exhaustive list. In determining  
the adequacy and reasonableness of an insurer’s surplus, no single factor is necessarily  
controlling. Instead, the director considers the net effect of all of these factors, plus other factors  
bearing on the financial condition of the insurer. In comparing the surplus maintained by other  
insurers, the director considers the extent to which each of these factors varies from company to  
company, and in determining the quality and liquidity of investments in subsidiaries, the director  
considers the individual subsidiary and may discount or disallow its valuation to the extent that  
the individual investments warrant.  
History: 2024 MR 6, Eff. March 20, 2024.  
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;